HB3923

Regular Session

Relating to state employment opportunities for individuals who do not hold a bachelor's degree.

LowStandard timeline

Low Cost

Effective:2025-06-20

Enforcing Agencies

State Auditor's Office • Governor's Budget Office • Legislative Budget Board

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

Effective Date: June 20, 2025 (Effective immediately upon signature).
Compliance Deadline: Q4 2025 (Expect state agencies to begin altering job postings immediately; vendors must align recruitment standards now).
Agency Rulemaking: The State Classification Officer (State Auditor’s Office) is tasked with continuous review. While the first formal report is not due to the Legislative Budget Board until October 1, 2026, agencies are authorized to waive degree requirements immediately.

Immediate Action Plan

1. Audit State Job Orders: Staffing vendors must immediately review all open requisitions and query agency contract managers on whether degree requirements have been waived.
2. Request Equivalency Matrices: Demand clear guidance from state clients (e.g., "4 years experience = 1 degree") to standardize candidate screening.
3. Update "Knock-Out" Questions: Remove automatic degree filters from recruitment platforms for relevant state job codes.
4. Review Internal Compensation: Private employers should anticipate tighter labor markets for non-degree professionals and review wage bands for these roles to ensure retention against state offers.

Operational Changes Required

Contracts

Staffing MSAs: Vendors holding Master Service Agreements (MSAs) with the state (e.g., DIR, temporary staffing) must review "Key Personnel" and "Minimum Qualifications" clauses. If your contract explicitly demands a degree for a role where the state has waived it, you must request a contract amendment to avoid being contractually bound to a higher standard than the agency itself.
Subcontractor Agreements: Ensure flow-down provisions to recruiting subcontractors reflect the new "experience-in-lieu-of-degree" standards to widen the candidate funnel.

Hiring/Training

ATS Reconfiguration: Staffing agencies must update Applicant Tracking Systems (ATS) immediately. Remove "Bachelor’s Degree" as a "Knock-Out Question" for state job orders unless the agency specifically confirms the requirement remains.
Internal Benchmarking: Private employers competing for administrative and mid-level technical talent must audit internal job descriptions. If you require a degree for a role the state now opens to non-graduates, you risk losing candidates to the public sector.

Reporting & Record-Keeping

Equivalency Documentation: Staffing firms must document the specific "experience and training" used to qualify a non-degreed candidate for a state role. In the event of a performance audit, you must prove the candidate met the "proficiency" standard defined by the Classification Officer.

Fees & Costs

No Statutory Fees: There are no new filing fees.
Operational Costs: Minimal administrative costs associated with updating job descriptions and recruiting workflows.

Strategic Ambiguities & Considerations

"To the Extent Practicable": The statute allows agencies to retain degree requirements if reducing them is not "practicable." This creates a regulatory gray zone where two agencies may classify the same role (e.g., "Program Specialist") differently—one requiring a degree, one not. Vendors must verify requirements on a per-requisition basis.
Definition of "Proficient": The law replaces degrees with a "proficiency" standard but does not define how proficiency is measured (e.g., years of experience vs. certifications). Until the Classification Officer issues guidance, this is subjective and creates liability for staffing firms if a placement is deemed unqualified post-hire.

Need Help Understanding Implementation?

Our government affairs experts can walk you through this bill's specific impact on your operations.

Schedule Consultation

Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

Legislative Timeline

This bill's path through the Texas Legislature

TopicsLabor Labor--workforce Development State Employees Legislative Budget Board State Agencies, Boards & Commissions

Official Analysis

View HRO Analysis View All Bill Documents

BILL ANALYSIS

H.B. 3923

By: Bell, Keith

Delivery of Government Efficiency

Committee Report (Unamended)

BACKGROUND AND PURPOSE

According to the comptroller of public accounts, state government positions require a greater share of workers with a post-secondary degree than the total Texas jobs market, with about 35 percent of state government jobs typically requiring a bachelor's degree, compared to about 28 percent for all nonfarm jobs in Texas. Also according to the comptroller, the state faces stiff competition with positions that require bachelor's and postgraduate degrees exacerbated by significantly lower pay for similar work in comparison to private employers. The bill author has informed the committee that this pay disparity makes it increasingly difficult to attract and retain qualified talent in the public sector. According to the National Governors Association, over half of U.S. state governments have adopted policies encouraging skills-based hiring, including eliminating degree requirements for many job postings, with these states seeing faster growth in job postings that don't require degrees compared to states without such policies, which helped the states address talent shortages, diversify their workforce, and improve hiring outcomes. H.B. 3923 seeks to modernize state hiring practices by requiring the classification officer in the State Auditor's Office to, among other things, reduce to the extent practicable the number of state agency positions requiring an employee to hold a bachelor's degree as a condition of employment in order to shift towards a skills-based hiring model to help strengthen the state workforce, improve recruitment, and promote upward mobility for all Texans.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 3923 amends the Government Code to require the classification officer in the State Auditor's Office to do the following in relation to state employment opportunities:

·identify state agency positions for which the educational, experience, and training requirements could be reduced to increase the number of qualified applicants who could proficiently perform the positions;

·reduce to the extent practicable the number of state agency positions requiring an employee to hold a bachelor's degree as a condition of employment;

·evaluate ways to expand career advancement opportunities for state agency employees who do not hold a bachelor's degree; and

·report this information required to be gathered to the governor's budget office and the Legislative Budget Board not later than October 1 preceding each regular session of the legislature.

EFFECTIVE DATE

September 1, 2025.

House Authors

Rep. Keith BellRepublican · Primary Author

Joint Authors

Coauthors (5)

Senate Sponsors

Sen. Tan ParkerRepublican · Primary Sponsor

Cosponsors (5)

Bill Text(with markup)

H.B. No. 3923

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

	AN ACT
	relating to state employment opportunities for individuals who do
	not hold a bachelor's degree.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Section 654.037, Government Code, is amended by
	adding Subsection (e) to read as follows:
	(e) The classification officer shall:
	(1) identify state agency positions for which the
	educational, experience, and training requirements could be
	reduced to increase the number of qualified applicants who could
	proficiently perform the positions;
	(2) reduce to the extent practicable the number of
	state agency positions requiring an employee to hold a bachelor's
	degree as a condition of employment;
	(3) evaluate ways to expand career advancement
	opportunities for state agency employees who do not hold a
	bachelor's degree; and
	(4) report the information gathered as required by
	this subsection to the governor's budget office and the Legislative
	Budget Board in the time required by Subsection (a)(2).
	SECTION 2. This Act takes effect September 1, 2025.

LEGISLATIVE BUDGET BOARD
Austin, Texas

FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION


April 14, 2025

TO:	Honorable Giovanni Capriglione, Chair, House Committee on Delivery of Government Efficiency

FROM:	Jerry McGinty, Director, Legislative Budget Board

IN RE:	HB3923 by Bell, Keith (Relating to state employment opportunities for individuals who do not hold a bachelor's degree.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

308 State Auditor's Office

LBB Staff:

JMc, RStu, CMA, MMF

Related Legislation

Explore more bills from this author and on related topics

Frequently Asked Questions

Common questions about HB3923

What does Texas HB3923 do?

HB3923 mandates that state agencies eliminate bachelor’s degree requirements for job classifications where skills or experience can substitute for formal education. This legislation immediately expands the eligible talent pool for state employment, creating direct labor competition for private sector employers in skilled trades, administration, and IT, while forcing government staffing vendors to overhaul candidate screening protocols immediately. Implementation Timeline Effective Date: June 20, 2025 (Effective immediately upon signature).

Who authored HB3923?

HB3923 was authored by Texas Representative Keith Bell during the Regular Session.

When was HB3923 signed into law?

HB3923 was signed into law by Governor Greg Abbott on June 20, 2025.

Which agencies enforce HB3923?

HB3923 is enforced by State Auditor's Office, Governor's Budget Office and Legislative Budget Board.

How urgent is compliance with HB3923?

The compliance urgency for HB3923 is rated as "low". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

What is the cost impact of HB3923?

The cost impact of HB3923 is estimated as "low". This may vary based on industry and implementation requirements.

What topics does HB3923 address?

HB3923 addresses topics including labor, labor--workforce development, state employees, legislative budget board and state agencies, boards & commissions.

Legislative data provided by LegiScanLast updated: November 25, 2025

Need Strategic Guidance on This Bill?

Need help with Government Relations, Lobbying, or compliance? JD Key Consulting has the expertise you're looking for.